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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4191
Experience:  FCCA FCMA CGMA ACIS
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I am a telemarketer who is self employed/soletrader and contracts

Customer Question

I am a telemarketer who is self employed/soletrader and contracts for a uk company. I get paid a commision per sale which is deposited in a UK bank account. Originally, I started this work whilst living in the uk and therefore completed my self assessment and paid tax on my earnings as per requirement. I have decided to move to Lahore, Pakistan where I sit and essentially do the same telemarketing work getting paid for each sale i do in a uk bank account. I understand I do not have to pay tax on my income in the UK whilst I live abroad, but I would like this backed up with legals ( I cant find anything in writing from HMRC or uk law) . I want to get something to back me up if questioned. I am a law abiding british citizen and want to stay that way! HELP!
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Firstly, when you left the UK did you complete a Form P85? If you did not you should do so immediately. Fortunately there is no time limit on its submission, the form is available on the web and can be filed on line. On receipt of the P85 HMRC will classify you as non resident for the tax year after your leaving date and furthermore split the leaving year into two portions, one resident and the other non resident. With a P85 filed you will find dealing with HMRC, if you have to, much easier.
You are correct in your surmise that even if you are paid through the medium of an UK bank account you are not taxable in the UK except for any interest earned. However as a British Citizen you do retain your personal allowance, currently 10.6K, to offset this.
Under the Double Taxation Convention between the UK and Pakistan the same income stream is not taxable in both jurisdictions. Any tax paid in one country is allowed as a tax credit against any liability in the other. The convention does not protect you from differences in tax rates, however.
It is really very easy; the P85 is the key. I do hope that I have been able to assist you with your question.
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.